Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
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Conclusion: Gold Bullish momentum remains strong!
Overall, gold continues to look promising here as the bullish momentum remains strong. Hence, Gold is probably on the way towards US$1,950 and US$1,975, with a slight chance for an overshot to US$2,000. But of course, given the rather overbought daily chart, the risk/reward is not that good anymore. Silver and many of the smaller mining stocks, however, might still offer a chance to play the ongoing rally over the next few weeks.
Once gold tops out in spring, expect a big pullback. Maybe even back towards the higher trending 200-day moving average (currently at US$1,808) at some point in midsummer. But that is all somewhere in the future. For now, the bullish momentum remains strong.
Overbought?
If more people are buying and their is a shortage of physical bullion then how can gold be overbought?
What stupid terminology, just illustrates that is all a big game to churn the indices up and down for the convenience of those who run the market racket!
Wind farms have been paid to refrain from producing up to half of the electricity they are capable of generating, according to research that led MPs to warn that "inappropriate" decisions on wind power were "forcing excess costs onto consumers".
An analysis found that, in 2020, three large wind farms in Scotland were paid a total of £24.5 million to fail to produce about half of their potential output.
Researchers said the "constraint payments", which are ultimately added to consumer bills, were being fuelled by a high concentration of onshore wind farms in Scotland often leaving the electricity grid unable to cope on windy days.
The Renewable Energy Foundation, a charity that publishes energy data, said the problem would continue until "until there is more than sufficient interconnection between Scotland and the centres of demand in England". The analysis comes ahead of an expected spike in electricity bills.
Craig Mackinlay, who leads the Net Zero Scrutiny Group of Conservative MPs, said the constraint payments were an example of unnecessary costs being charged to consumers.
A government spokesman insisted the payments were "not a viable income stream for onshore wind developers", but a new analysis by REF found some individual wind farms were agreeing to not produce up to half of their potential output in order to avoid overwhelming the grid.
Excess costs ‘forced onto consumers’
In one case, £7.7 million in "constraint payments" handed to the operator of a 23-turbine scheme in Scotland in 2020 led to the wind farm deliberately failing to produce 51 per cent of its potential output. In another, SSE, the operator of the 33-turbine Strathy North wind farm in the Highlands, was paid £5.9 million to avoid producing 48 per cent of its capacity.
Last year, which saw particularly low wind speeds, the 59-turbine Dorenell wind farm in Moray, owned by EDF Renewables, was paid £1.5 million to avoid producing a total of 179 gigawatt hours – 35 per cent of its potential output.
Dr Lee Moroney, REF's principle analyst, said: "When wind farms have been so poorly sited that they are discarding up to 50 per cent of their annual output, the public has every right to ask how on Earth these projects came to get planning permission."
Mr Mackinlay said turbines appeared to be constructed "in inappropriate locations, forcing excess costs onto consumers and harming our precious natural heritage in the process".
More renewables ‘will protect customers’
A government spokesman said: "Gas is expensive and wind power is cheap, so we need more renewables to protect consumers. Constraint payments remain the most efficient option for National Grid to keep Britain's lights on, and are only used when there is excess supply."
A spokesman for EDF Renewables said it had to respond to National Grid's constraint requests "in order to manage the system and keep the lights on".
https://www.lse.co.uk/ShareChat.asp?ShareTicker=CEY&share=Centamin-PL
Thank you Rebees!
Some may find this of interest. - Hope you found 'The paradigm of money' of interest.
https://www.midastouch-consulting.com/gold-chartbook-20022022-gold-bullish-momentum-remains-strong
live FTSE prices
https://www.ig.com/uk/indices/markets-indices/ftse-100
Equities in Europe traded higher during Monday's premarket trading as investors awaited the latest PMI data reports.
Meanwhile, Russian and French Presidents Vladimir Putin and Emmanuel Macron agreed on the need of finding a diplomatic solution to the Ukraine crisis. Additionally, the United Kingdom was set to declare the end of obligatory self-isolation COVID-19 rule.
The DAX jumped by 1% at 8:06 am CET. At the same time, the CAC 40 increased by 0.68%, and the FTSE 100 advanced by 0.51%.
The euro gained 0.39% to the dollar to sell for $1.13693 at 8:01 am CET. At that moment, the pound sterling also rose 0.21% against the greenback to go for $1.36260.
Baha Breaking the News (BBN) / SP
Happy Monday y’al
Quit agreePaul,
The court case has been in limbo whilst the SCC are still considering if they will ratify Law 32
They rejected LAW 32 if you recall and were then sent away and asked to reconsidered their decision.
That no doubt put the SCC's nose out of joint, so they most probably chucked the papers to the bottom of the pile, I doubt they will ever resurface in the next decade!
Shame because the court case was nearly over and them Law 32 gave the judiciary the chance to sit on the fence and not commit themselves!
What about the outstanding $30million fuel subsidy that is in dispute, that would be handy now, but its been going on for so long that it could have gone through the international court and been settled by now, but our BOD preferred to wait for the Egyptian courts, OK if you have a 100 years to waste I suppose!
It seems that the courts priorities are dealing with anyone who disagrees with Sisi, or that's what I was told.
https://uk.practicallaw.thomsonreuters.com/3-500-5425?transitionType=Default&contextData=(sc.Default)
When you think about it Mr T Erma/ Egypt itself should be wanting to get Centamin/ Sukari and the other parcels of land, up and running at a high capacity, as they are getting a big chunk of the profits.
We have not heard anything about the court case for a while. Have many years it that now? 9?
Maybe it has never been settled to deter any take over bids.
Hi Mr Bond,
I have no doubt EMRA want Sukari put back on track, what a pity they didn't show a bit more interest in the past so it never came off the track on the previous occasions because those running it weren't doing things properly, it may have avoided the present major derailment!
Possibly the lesson to be learned is that former police captains and the army don't really have a thorough understanding of proper commercial gold mining methods?
Some may find this interesting.
https://theparadigmofmoneyfilm.com/andrew-maguire/
Hi Mr Bond,
Very fair observations and comments, thank you.
In the meantime I think especially in today's world run by those in power on the basis of greed deceit,unfairness and lies, so much could/should have been learned from Ethos practiced by the native American tribes, they seemed to have the right values!
"It does not require many words to speak the truth!"
"I am tired of talk that comes to nothing!"
"Good words do not last long unless they amount to something!"
Chief Joseph, or Hin-mah-too-yah-lat-kekt, was the spearhead of Wallowa band of ‘Nez Perce’, a primitive Red Indian native tribe of America.
He led the revolt against the United States federal government, which forced them to leave their ancestral lands
It seems the ripples from Cowichan's pebbles are achieving ever wider resonance. - Significant players in the space, now await with interest/anticipation. his next posting/revelation. - Centamin clearly don't like it, but it's their own fault, they have brought it upon themselves. - Cowichan is effectively demonstrating that shareholders are not just simple, subservient, cannon-fodder.
One interesting side effect of posing questions to Centamin via LinkedIn has been the associated metadata (who read what, where they work, etc.)
Apart from the usual suspects having read and reread (some of the number of views is crazy high) the most common organizations have been who you'd expect i.e. the EMRA, Capital, Buchanan, Barrick, Centamin, etc.) but there have been a few outliers - most notably from their sudden arrival & volume of hits is Rio Tinto
I'm not invested in Rio so I haven't typically read their news or quarterlies (except the recent brouhaha re: bullying/sexism) so I checked them out.
Apparently they are making a big push into reducing their carbon footprint and other ESG initiatives - solar power to play a big part. One of their fancy charts shows the sunny Egypt region which they are apparently keen to exploit for said carbon reduction efforts.
Given Rio Tinto is part owners with Turquoise Hill at Oyu Tolgoi they actually do produce a fair amount of gold already as a by-product of copper production. Why they are looking at my Centamin posts en masse is anyone's guess - but perhaps Egypt is now an attractive destination given you could essentially produce copper & gold from any number of the concessions Centamin has been awarded - and with the right planning - using a lot less fossil fuel from day one.
Mr Tibbles-
Bristow would like Cote De Ivore. IMO. So would others. At the right and fair price let it go-
Egypt Barrick would find themselves with problems.
Remember the option that was given to Sami many years ago, one option at a time,not total control of more and more concessions.
EMRA is mlitary, no matter what changes in Government the Militaries strengh is not diluted.
IMO.
This may be of interest to retail investors like us who want to heard , although obviously of no interests to short term traders.
ShareSoc represents the interests of individual investors to regulators and government, and offers a range of investor education, information and networking services.
We want to ensure that shareholders have their proper say as owners of the businesses in which they invest. We campaign on both specific company issues and on individual investors’ wider concerns. We have had notable success in delivering change at a number of companies and have influenced government policy and legislation.
ShareSoc is dedicated to the support of individual investors (private shareholders as opposed to institutional investors – although directors or employees of institutions can join as individual members if they wish). Our aim is to make and keep you better informed so as to improve your investment skills, and protect the value of your investments.
We won’t shirk from tackling companies, the Government or other institutions if we think you are not being treated fairly.
https://www.sharesoc.org/
Fair comments Mr Bond, I agree we all want the Sukari put back on track and since the changes to Egyptian mining law Martin Horgans strategy for expansion in Egypt in preference to what may now be more risky environments and under less familiar jurisdictions seems to make sense.
That said there are those that remain on the BOD & NED's who must bear considerable responsibility for the unnecessary pain the company and share holders are new feeling and they should resign or get pushed on their way.
I have every faith in Martin Horgan and I can understand his reluctance to get involved in raking up the past and also his preference get to work from a clean sheet with his chosen team, but in the meantime I really don't want the likes of Bristow to hijack the company for a pittance.
Hi Rebess,
Coincidentally I had also been thinking about the very same thing, possibly EMRA should have questioned if the Egyptian Police Academy curriculum included general mine management after the appointment of Yoursef El Raghy as Sukari General Manager and especially considering the Kees Dekker reports of 2015 & 2018 had expressed the now proven by subsequent events serious concerns over of the apparent failure by the Sukari management to have in place fit for purpose open & underground grade management.
Although I understand that EMRA do have representatives permanently on site which must surely raise some questions ?
How many of the previous BOD & NED'S are still in post despite not only failing to act with due diligence in overseeing Sukari operations, but in addition by signing off huge amounts of company funds to be as now is apparent wasted on pointless exploration and hole drilling on West African projects which have resulted in no benefit or return to share holders, although admittedly proven to be nice little earners for the drilling companies involved?
It seems now that the previous BOD & NED's who are responsible for allowing what should be by now be a world class beacon to mining excellence and instead to deteriorate into an a very expensive embarrassment would like to keep their heads down and hope everyone will forget!
Rebbess I would think by now EMRA like most genuine LT shareholders want everything put back on the right track for production increases and expansion in Egypt.
INMHO:
I wonder how EMRA feel about all the remedial work and the cost of putting it right? - After all, they will have to stand half the cost.
Hi Bobliz35,
Thank you for the reply and indeed you offer to help Cowichan in his quest for some answers on behalf of shareholders
Although I appreciate the wish to share information on this board, there may be some who are looking in that aren't batting on the same team as it were , so may I suggest that you make additional contact with Cowichan on his Twitter or Linkedin email messaging in case you wish to exchange any sensitive information in the first instance?
Cowichan raises very relevant points/questions in his last post, one of which is the very significant value of the clear up contract awarded to Capital, which as we are painfully aware wouldn't have been necessary if the BOD & NED had executed their duties with due diligence over a number of preceding years!
But that said a nice little earner for Capital and it seems that there have always been close ties between Centamin senior management and Capital looking at the names in the tree below
https://offshoreleaks.icij.org/nodes/82006106
https://www.proactiveinvestors.co.uk/companies/news/207814/capital-drilling-lands-contract-renewal-for-centamins-sukari-mine-207814.html
Tibbs
Mr Tibbles. Aisc is indeed not a perfect metric, but it is the best we have and an improvement on before we it, plus the percentage increase for a particular company is illuminating, especially if like us it is large and reflected in the reduced share price, or like Barrick up as we see, but quite a lot less, and shows the effect of the raised oil price. My second sad big holding, Hochschild, mothballed their Arcata mine because the aisc was higher than sales, and have had to hedge the entire output of their Pallancata mine as again if the PM prices fall it would be losing money, thus will miss out on any rise. Ultimately a company can not continue operation if the gold price is below aisc as even capital raising will soon be eaten up.
On another note I think the possibility of the dividend being raise from 5c to 6c is highly unlikely, it is more likely to begin to fall later this year unless gold continues to soar faster than the aisc
Hi Tibbs,
Always succinct and understanding and acceptance of those on this board with specialist knowledge. I would however remind you that Centamin IR are the recipient of COMPANY DOLLAR
Both my IR Companies and PR Companies followed my Company line without fail as their income was dependant on my Corporate line and failure was not part of their contractual obligation. Believe me the Regulatory authorities are staffed by zealous individuals who delight in fragging into the light of day failings of Companies in their Company strictures. Many who perhaps hold similar views perhaps to yourself on big Corporate business and Institutions.
With Regulatory authorities behind you Corporate fortresses can be demolished. except of course Comex but look up who is the Regulator of that organisation.
Kindest regards and the balance you so ably bring to the conscience of this board.
Bob
Energy prices don't need to be such a wild card for miners - solar helping to bring predictability
Barrick AISC
2020 $967
2021 $1,026
2022 $1,040 - $1,120 estimated
"Bristow said energy was the biggest driver of cost increases, and Barrick’s solar power facilities at mines in Nevada and Mali would help reduce its power costs."
https://www.theglobeandmail.com/business/international-business/article-miner-barrick-gold-announces-1-billion-share-buyback-posts-higher/
------------------------------------>>>>
*There, I said something positive about Centamin!
Hi Bob&Liz,
Thank you for your interest and offer of help support to Cowiichan on the issues in question with regard to FCA regulatory protocols and procedures.
I have no knowledge of the Seismic survey process and so I am reliant on other mining industry professionals understanding.
Most likely the Centamin IR are trying to be as helpful as they can within their remit, although their knowledge of Seismic survey techniques is likely limited to say they least and they would just be relaying the company brief regarding results.
There seemS to be little doubt of the magnitude of the dereliction of duty by the BOD & NED's, although it was unfair to expect Cowichan to attempt to fight the cause alone on so many different issues, so your knowledge of contacts and procedures will no doubt be a great help to him.
Tibbs
Tibbs,
Thanks for your reply!
Given that I annoy myself with the steady stream of mostly negative posts I appreciate this board's (and your!) tolerance. I miss the days when all I would post is how management was on the right track and pushing production up & up! I do believe Centamin can return to that exceptional performance and perhaps very soon. The prospects of Egypt are enormous and there is no company in a better position to take advantage than Centamin. Mr Horgan has so far managed to make a great impression - getting the basics /foundations right at Sukari to build on - hiring him looks to be the best decision the BOD have made in a long time. But it hardly makes up for the past and as you say - with so many missteps - some of them should graciously bow out of the picture.
Bobliz35 - yes, please do send the post(s) - Having our group of shareholders get vocal is exactly what I'd hoped might happen. I agree that for anyone wishing to take advantage of our current share price underperformance - raising a flag might give them pause. Also, it's good to get your perspective and insights on the regulatory system in the UK - thank you!